Guide on FM Procurement - BCA
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Guide on
FM Procurement
An initiative from the FMIC (Facilities Management Implementation Committee)1 Procurement
Taskforce
1
For more details on the FMIC, please visit https://www1.bca.gov.sg/buildsg/facilities-management-
fm
1© Building and Construction Authority
First edition, 25 January 2021
All rights reserved. No part of this publication may be reproduced or copied by any means without the
prior written permission of the Building and Construction Authority, application for which should be
addressed to the Chief Executive Officer, Building and Construction Authority, 52 Jurong Gateway
Road, #11-01, Singapore 608550 or send them through https://www.bca.gov.sg/feedbackform/.
2Preface
As part of the Real Estate Industry Transformation Map (ITM) launched on 8 February 2018 by Mr
Desmond Lee, Minister-in-charge of Social Services Integration and Minister for National
Development, the Building and Construction Authority (BCA) was tasked to coordinate the
development of the Facilities Management (FM) sector. A tripartite Facilities Management
Implementation Committee (FMIC) was formed in April 2018 to bring together major stakeholders,
comprising both public and private building owners, FM service and solution providers, trade
associations and chambers (TACs), and unions, to co-develop initiatives to create a healthy FM eco-
system. The key focus areas of the FMIC are to build capability among the FM service providers and
forge integration among the FM sector.
Procurement is a key enabler to FM transformation and in creating lead demand in the public sector.
The FMIC’s Procurement Taskforce, set up to review and strengthen FM procurement practices, has
consulted the Centre of Excellence for FM (JTC), various Government Procuring Entities (GPEs) and
FM providers to prepare this Guide on FM Procurement. The Guide aims to provide service buyers
with an overview of the tender process for FM procurement, key considerations in determining the
procurement approach, adoption of outcome-based contracting, structured tender evaluation
framework and performance management of the service providers. Outcome-based requirements are
desirable as they allow the FM service providers to innovate and adopt more productive solutions
rather than providing fixed headcounts or task-based requirements. This gives more value and better
quality to the service buyers.
The Guide also includes examples of outcome-based specifications and performance management
indicators to measure the outcomes and used for payments, which can be included in tender
requirements. It will be continually updated to keep it relevant.
IAcknowledgement
Aside from extensive consultations with the JTC Corporation (Centre of Excellence for FM) and key
stakeholders, this Guide on FM Procurement was developed with inputs from the Procurement
Taskforce. Special thanks to all the Taskforce members for their significant contribution and support.
Procurement Taskforce Members
Co-chairs:
Mr Tay Ter Long Group Director, Contracts and JTC Corporation (JTC)
Procurement Division
Ms Lim Puay Shan Deputy Director, Procurement Building and Construction Authority
Policies Department (BCA)
Members:
Ms Quek Bee Lian Senior Associate (Contracts) Housing and Development Board
(HDB)
Mr Albert Choo Director of Infrastructure Ministry of Education (MOE)
Mr Mark Thia Chief Executive Officer Singapore International Facility
(completed term as CEO in Management Association (SIFMA)
Jun 2020)
Ms Andrea Chai SEA Regional Leader, Supply CBRE Enterprise Facilities
Chain Solutions Management (CBRE)
Ms Carolyn Rose Director - Client Solutions, CBRE Global Workplace Solutions
Southeast Asia (CBRE)
Mr Seng Joo How Chief Executive Officer CPG Facilities Management Pte. Ltd.
(CPGFM)
Mr Steve Kang Senior Manager, Procurement ENGIE Services Singapore Pte. Ltd.
(ENGIE)
Appreciation is also extended to the FMIC and the following individuals for their valuable contribution
to the Guide:
Mr James Ng, Deputy Director, Business Strategy & Development, Surbana Jurong
Mr Timothy Goh, Head, Corporate Services, Corporate & Business Development, Exceltec
IITable of Contents
Applicability of Guide on Facilities Management Procurement .......................................................... 1
FM Procurement Process ................................................................................................................. 1
Stage 1: Pre-Tender Stage............................................................................................................ 2
1.1 Determining the Procurement Approach ......................................................................... 2
1.2 Contract Duration ............................................................................................................ 5
1.3 Outcome-Based Contract (OBC) ..................................................................................... 7
Stage 2: Tender Preparation Stage................................................................................................... 8
2.1 Drafting Outcome-Based Contracts ................................................................................. 8
2.2 Desired Outcomes and Outcome-Based Statements ...................................................... 8
2.3 Key Performance Indicators (KPIs) ............................................................................... 10
2.4 Performance-Based Payments...................................................................................... 12
2.5 Other Optional Performance Management Practices .................................................... 13
Stage 3: Tender Evaluation Stage ............................................................................................... 15
3.1 Value-For-Money .......................................................................................................... 15
3.2 Tender Submissions ..................................................................................................... 15
3.3 Weightage for Price and Quality Components ............................................................... 16
3.4 Price Component .......................................................................................................... 16
3.5 Quality Component ....................................................................................................... 17
3.6 Information required in tender documents ..................................................................... 18
Stage 4: Post-Tender Stage ........................................................................................................ 19
4.1 Performance Appraisal .................................................................................................. 19
Conclusion ...................................................................................................................................... 20
IIIApplicability of Guide on Facilities Management
Procurement
This Guide aims to provide guidelines to the FM sector and to set the standards for the procurement
of facilities management (FM) services.
? Which
WhichFM
FMservices
serviceswill
is this
thisguide
Guideapplicable
be applicable
to? to?
234
FM01 Integrated FM (IFM) ME01-ME12 Mechanical & CR01/CR09 Building FM03 FM04 Pest
& Managing Agent (MA) Electrical Maintenance Maintenance & Repairs Landscaping Control
Services Works
? Additional FM Procurement References
Refer to MHA’s Refer to NEA’s Guide Refer to BCA’s Guide
Guide on on Specifications for to Smart FM4 for
Outcome-Based Outcome-Based adoption of smart
Security Contracts2 Cleaning Contract3 solutions in FM
EPU/SER/43 Security services FM02 Cleaning services Smart FM
2 For MHA’s Guide on Outcome-Based Security contracts, pls refer to
https://www.mha.gov.sg/docs/default-source/default-document-library/guide-on-outcome-based-security-
contracts.pdf
3 For NEA’s Guide on Specifications for Outcome-based Cleaning contract, pls refer to
https://www.nea.gov.sg/docs/default-source/default-document-library/guide-on-specifications-for-outcome-
based-cleaning-contract---1st-edition89e97b332c74427486c435c18cd69708.pdf
4 For BCA’s Guide to Smart FM, pls refer to https://www1.bca.gov.sg/docs/default-source/docs-corp-
buildsg/guide_to_smart_fm.pdf
1FM Procurement Process
One of the key challenges identified by the FMIC is the fragmented FM sector. Firms provide services
in silos, typically offering only a single service such as cleaning, security, landscaping or maintenance.
Service buyers therefore call for separate service contracts, rather than a single integrated contract,
which may not be efficient. In addition, contracts tend to be short term with option to renew yearly. It
is also common for service buyers to specify fixed headcount or task-based requirements which are
prescriptive. This discourages investment in training or technology.
FM operation tends to be heavily reliant on manpower and manual operations. At this age of
digitalisation and with the workface ageing, it is timely for FM companies (FMCs) to adopt FM
management and digital platform to enable a fully digitalised property management model, reducing
and replacing manual processes and paper-based workflows, thereby saving time, costs and reduce
any possible disruption to the operations.
To tackle these issues, the sector should move towards Integrated Facilities Management (IFM) and
Outcome-Based Contracting (OBC) as much as possible except for instances where prescriptive
specifications are needed to meet regulatory requirements. The Procurement Taskforce under the
FMIC has collated and organised the good practices and considerations into 4 stages in this Guide;
covering pre-tender to post-tender stage as illustrated in Fig 1 below.
Figure 1. Stages of FM procurement
1Stage 1: Pre-Tender Stage
1.1 Determining the Procurement Approach
1.1.1 Service buyers should consider their requirements carefully before selecting the most suitable
procurement approach. Currently, it is common to call multiple separate tenders for each
single FM service within a building and contract with each FM service provider separately.
Service buyers would engage a Managing Agent (MA) to manage the various single service
term contracts. This is commonly known as the Managing Agent-Term Contract (MA/TC)
procurement model. However, this approach is resource intensive and lacks integration across
the building services since each term contract covers a specific scope only.
1.1.2 Where possible, service buyers should consider calling integrated FM (IFM) contracts
to provide overall visibility and integrated control of the building FM services (see
definition of IFM below). A longer contract period and outcome-based specifications should
also be adopted so that there would be scale and scope for the service providers to implement
smart FM and other innovative solutions.
2? What is Integrated FM (IFM)?
Definition of Integrated FM (IFM)
Integrated FM5 refers to the provision of at least two distinct FM services by the same company.
The service provider may either deliver the service or outsource and manage subcontractors.
Areas of distinct maintenance services
• Building maintenance services (BMS)
• Mechanical and electrical (M&E) maintenance services (integrated M&E maintenance is
considered as 1 distinct maintenance service)
• Security services
• Cleaning services
• Landscaping works
• Pest control
• Waste management system
• Others
BCA Contractors Registration System (CRS)
Government agencies procuring IFM or MA services are required to specify the FM01 Workhead
under BCA Contractors Registration System (CRS) with effect from 1 April 2020.
Workhead Description
FM01 – Facilities Management6 Provision of integrated facilities management (IFM)
and/or managing agent (MA) services by facilities
management companies
5 Reference from FM Global market report 2018
6 For tendering limits under FM01, pls refer to https:www1.bca.gov.sg/procurement/pre-tender-
stage/contractors-registration-system-crs/crs-tendering-limits
3? Why choose IFM?
Benefits of IFM
Integrated FM approach allows service buyers to achieve the following:
Service Buyers
✓ Reduce resources on service buyers in contract supervision and management with single
point of responsibility instead of managing multiple FM service contracts.
✓ Reduce possibility of operational disputes between the different service providers which are
involved in maintaining the same building.
✓ Improve responsiveness by having the IFM service provider to provide one-stop service to
coordinate and manage multiple FM services in the building or facility.
✓ Achieve greater economies of scale through aggregation of demand for common or similar
services within the building or facility which could lead to lower costs in the longer term.
✓ Ability to leverage off the service provider’s sub-contract network to obtain better pricing.
Service Providers
✓ Increase productivity as flexibility and autonomy is provided to Facilities Management
Companies (FMCs), which provide IFM services, to streamline its processes and adopt
technology or smart FM7 solutions (e.g. IoT, integrated command centre, multi-functional
FM robots) for resource and operational optimisation to achieve the desired outcomes.
✓ Optimise FM service delivery which could lead to better service quality
1.1.3 Service buyers should explore bundling more distinct FM services to achieve greater
economies of scale and provide the scale for service providers to implement smart FM and
other innovative solutions across the FM services. For building owners with a portfolio of
buildings, an aggregation of FM (AFM) services across the multiple properties is possible.
7 Refer to BCA’s Guide to Smart FM
4Tips
!
Considerations for integrated and Tips
aggregated FM
Higher contract value and could result in More resources and time could be factored in
more complex tender evaluation during the tender evaluation process.
Responsibilities fall on single provider of Service buyer to have contingency measures (i.e.
FM services, need for contingency activation of term contractors from other projects
measure or specify higher security deposit) to manage
risks and ensure continuity of services.
Lack of in-house capabilities to administer FMCs are also providing managing agent
FM contracts services under IFM contracts. This enables the
service buyers to reduce their resources in
managing multiple service providers.
Varying requirements and specifications Service buyers can vary the KPIs and Service
for different building typology Level Agreement accordingly to the building type
in the tender document.
1.2 Contract Duration
1.2.1 Short contract durations would mean more resources spent to conduct frequent tenders and
service buyers may not get the best value for money without economies of scale. Conversely,
a longer contract duration would provide a longer cost recovery period for investment in
technology/training and retain workers on the job. This encourages service providers to invest
in staff training, technology and innovative solutions, which could translate into better quality
FM services.
5Recommended minimum contract duration
At least 3 years with an option to extend for another 3 years (i.e. 3+ 3 years contract) provided the
terms and conditions are met.
Note: With overall good performance, service buyers can exercise the option to extend the contract
duration whilst bearing in mind factors such as any changes in the scope of work or changes in
contract cost if the contract were to be extended.
Tip
!
It is recommended to include a “mobilisation period” in addition to the contract period. This is to
allow the awarded contractor to familiarise with the site issues, take over from incumbent and set
up documentation/ reporting processes for better handover of services.
Examples of current IFM contracts
Areas of maintenance services Contract
Duration
Cleaning, Waste management, Pest control, Landscaping, Mechanical & 3 + 3 Years
Electrical, Sanitary and Plumbing Services for industrial buildings (JTC)
Cleaning, Pest Control, Security and Landscaping Services for BCA 3+ 3 Years
Academy (BCA)
ACMV, Chiller, Electrical, Pump works, BMS, Fire protection, Security 5 Years
Systems, Swimming pool, Vertical Transportation System, Building
Tradesman Maintenance for Singapore Polytechnic (SP)
61.3 Outcome-Based Contract (OBC)
1.3.1 In OBCs, the service specifications are based on desired outcomes or outputs for the FM
services, rather than basing on headcount to be provided or prescriptive task-based
requirements.
1.3.2 The benefits of OBC are summarised below:
✓ Provides the flexibility to propose efficient and innovative solutions by integrating
manpower, technology and operational processes to meet the desired outcomes.
✓ Taps on service provider’s experience which may reduce operational costs, maintenance
costs and resources.
✓ Improves control and enforcement of quality standards instead of focusing on the
headcounts and/or prescriptive methods and processes.
Tip
!
• Clearly specify the desired outcomes in OBCs and avoid being subjective to minimise
contention.
• Merely removing the headcount numbers from a tender, while retaining all the prescriptive
requirements or tasks, does not qualify as an OBC. Refer to Stage 2 on drafting an OBC.
In some cases where outcomes are difficult to define or measure, a hybrid approach can be
adopted. i.e. the specifications are largely based on desired outcomes but include some
minimum headcount or frequency requirements.
7Stage 2: Tender Preparation Stage
2.1 Drafting Outcome-Based Contracts
2.1.1 The key features of an outcome-based contract (OBC) are (1) outcome-based specifications
and (2) performance appraisal and reward system.
2.1.2 When drafting an OBC, service buyers should first decide on the desired outcomes and
describe how to achieve the outcomes in the outcome-based statements. A performance
appraisal and reward system can be developed for effective contract management. Key
performance indicators (KPIs) are used to measure the achievement of outcomes. To monitor
and encourage good performance, the KPIs can be tied to the service provider’s payments
where payments and reward are based on the FM service provider’s performance.
2.1.3 Figure 2 below shows the flowchart for drafting an OBC. The considerations for drafting an
OBC are further explained in this section.
Outcome-based specifications Performance appraisal and reward system
Desired Key Performance-
Outcome-based
outcomes performance based payment
statements
indicators system
Figure 2 Drafting outcome-based contracts
2.2 Desired Outcomes and Outcome-Based Statements
2.2.1 The desired outcomes spell out the end results which service buyers expect from the service
providers and it should be aligned with the organisation’s business objectives. The outcome-
based statements set out the scope of services, what is to be achieved, the desired
performance standard and the service quality that are required.
2.2.1 To ensure that the stipulated outcomes are achievable, the service buyer should include
outcome-based statements and priorities as a guide for service providers. Outcome-based
statements should leave room for service providers to propose alternative solutions to meet
the required desired outcome using varying inputs such as integrating manpower, technology
and/or operational processes.
8• Avoid
• Avoid specifying task-based requirements e.g. deploying 1 cleaner at each level to mop the
office floor on a daily basis. Such tasking should be kept minimal to allow service providers to
focus on achieving desired outcomes with optimal resource deployment and use of innovative
methods or technologies.
• Avoid over-specifying requirements which could drive up costs unnecessarily.
• Avoid under-specifying requirements so that service providers have a clear understanding
of the scope of work to prevent any mismatch in expectations which could lead to tense
relationships between the service buyer and the service provider.
Tip
! •
• When specifying the maintenance schedule, service buyers should adjust the frequency of
maintenance according to the priority / importance and should not set too onerous
requirements.
Examples of desired outcomes and outcome-based statements
Desired outcome Outcome-based statement
Customer satisfaction Ensure time taken to respond to complaints is within the specified
timeframe.
Ensure that customer satisfaction, measured by customer
satisfaction assessments and surveys, is at a satisfactory level.
Minimum disruption, Ensure that routine maintenance is carried out in a timely manner
disturbance and to minimise downtime, breakdown or failure
inconvenience to building
Ensure that building occupants are well informed of planned
operations
maintenance works
92.3 Key Performance Indicators (KPIs)
2.3.1 The Key Performance Indicators (KPIs) are used to measure the achievement of the desired
outcomes and the performance measurement shall be clearly specified in the documents. A
maximum score is set for each KPI and the service provider is scored accordingly to its
achievement. The total KPI scores (i.e. performance scores) will be computed at a regular
fixed period as agreed in the contract, say monthly, and used to measure the performance of
the service providers against the Performance Targets (PT) (Refer to 2.3.2) set by the service
buyers.
Tip
!
• Service level agreements such as specified timeframes for service providers to respond
or attend to system failure can be detailed in the specifications.
• KPIs and measurements should be:
✓ Clear – Use simple language to avoid ambiguities.
✓ Measurable
- Use objective indicators to enable enforcement and translation to payment. A clear and
transparent methodology on how the service buyer and providers will measure the
achievement of KPI is useful to ensure fair evaluation.
- Where possible, objective data collected by the service buyers or procurers’ facilities
management system and other statistical information shall be used to measure the
performance of each KPI.
✓ Achievable – Over-specifying could drive up costs unnecessarily. Service buyers to assess
the viability of the KPI set using the current contract performance as benchmark.
10Examples of KPI and Measurement for M&E services (for illustration only)
Outcome-based KPI KPI Target KPI scores
Statements
Ensure that routine No. of failures to Not more than 2 0 to 2 failure - 5 points
maintenance is restore systems failures per month
3 to 4 failures – 3 points
carried out timely to within stipulated
> 4 failures – 0 points
minimise downtime, response time.
breakdown or failure
Ensure that building No. of complaints due Not more than 2 0 to 2 failure - 5 points
occupants are well to failure to inform complaints per
3 to 4 failures – 3 points
informed of planned building occupants of maintenance work
> 4 failures – 0 points
maintenance works maintenance works.
Attend to system Time taken to 95% of cases 95% and above - 10 points
failures timely respond and rectify attended within
90% -< 95% - 5 points
system failures within stipulated timeframe
Below 90% - 0 points
stipulated timeframe
Performance score = total KPI scores achieved
Note: Service buyers to rationalise and set the KPIs, KPI targets and scoring according to the desired
outcomes set and organisation’s business objectives.
2.3.2 Performance Targets
The service buyers will set a monthly and/or annual Performance Target, pegged to the total
KPI scores, to be met by the service providers. The Performance Target can be the same
throughout the duration of the contract or vary yearly according to service buyers’ expectations
but must be clearly stated upfront in the tender documents. Similarly, the frequency and
methodology of performance evaluation should be clearly specified upfront to prevent disputes.
11Example of Monthly Performance Target
Year of Service Monthly Performance Target
1st Year 80%
2nd Year 83%
3rd Year 86%
4th and Subsequent Year 88%
Note: The Performance Target can be the same throughout the duration of the contract or vary
yearly according to service buyers’ expectations.
2.3.2.1 To derive the overall KPI scores for IFM contracts, service buyers could evaluate the KPI
scores for each FM service and average or sum up the scores on a weighted basis.
2.4 Performance-Based Payments
2.4.1 To encourage service providers to meet or perform beyond the Performance Targets,
performance-based payments can be adopted, i.e. if the total KPI score achieved is above the
Performance Target, a bonus amount on top of the monthly base fees can be paid to the
service provider. Conversely, any under-achievement of Performance Target can result in
amount being deducted from the monthly base fees. The bonus and deduction of monthly
fee should be capped at 10% of the monthly fee maximum.
12Example of Performance-Based Payment model
KPI score achieved by service Bonus/Deduction Payment to be received by service
provider provider
Performance Target + 10% or more Monthly Base Fee* + 10%
Performance Target + x% (up to
Monthly Base Fee + x% (up to 10%)
10%)
Performance Target Monthly Base Fee
Performance Target – x% (up to -
Monthly Base Fee – x% (up to -10%)
10%)
Performance Target - 10% or more Monthly Base Fee - 10%
* The Monthly Base Fee is the Base Fees stipulated in the Breakdown Costs of Tender and
accepted in the Contract.
If the monthly based fee is $150,000 per month and service provider obtains a KPI score of 75%
for the month where the Performance Target is set at 80%, the service provider shall be paid based
on monthly base fee less 5%, i.e. $142,500 for that month.
2.5 Other Optional Performance Management Practices
2.5.1 Building owners can consider exploring other performance management practices to
encourage service providers to perform beyond the required standard.
Tip
!
✓ It is more effective to encourage good performance through incentives than penalties.
✓ Close contract monitoring and transparent feedback of service provider’s performance
ensures better service delivery and achievement of desired outcomes.
2.5.2 Monetary incentives
Service buyer can consider providing a monthly or yearly percentage of bonus payment to
service provider for exceeding performance for certain key outcomes. This is to motivate them
to play a proactive role, work towards meeting the performance target and achieving
continuous improvement through their service of work. Service buyers can set their own
criteria and requirements for service provider to meet to be eligible for the bonus payments.
13For example:
• Service provider’s average KPI score of a year meets the respective yearly target
• Annual reduction in energy/ water consumption by 5%. Service buyers to include
mechanism of measuring and verifying the savings in energy/ water consumption.
• Annual Customer Satisfaction survey to meet the respective yearly target.
• Achieve zero lift breakdown/ complain/ defect service request
• No breach of the terms and conditions in the contract.
Service providers can share a certain percentage of the bonuses to operational staff as a form of
reward to their staff and even extend the incentives to the relevant sub-contractors (e.g. cleaning,
landscape or security companies)
Example of monthly and yearly incentives (reference from JTC)
Monthly Performance Target Monthly Bonus
Achieve zero (0) lift breakdown/ complaint / defect 1% of Management Fee
service requests (within a stipulated timeframe)
Achieve zero (0) conservancy, refuse removal 1% of Management Fee
and pest control complaints / service requests
Annual Performance Target Annual Bonus
92% Customer Satisfaction based on Survey 0.5% of Annual Management Fee
4% reduction in energy / water consumption 0.25% of Annual Management Fee
Consistent achievement of targets throughout the 0.5% of Annual Management Fee
year
14Stage 3: Tender Evaluation Stage
3.1 Value-For-Money
3.1.1 To ensure the best value, service buyers will evaluate tenders based on both price and quality
(non-price) components. The term “best value” does not refer to the cheapest option, but
rather the option that provides an optimal balance of benefits and costs based on total cost of
ownership.
3.1.2 A structured tender evaluation framework to assess tenderers on their price and quality
proposals submitted should be adopted. In line with the Government’s efforts to transform the
FM sector, a higher emphasis is placed on the assessment of quality component. For public
sector procurement involving cleaning and security services, the weightage for the quality
component is required to be equal or greater than the price component This would apply to
integrated FM tenders involving cleaning and/or security services.
Total Score = Price Score + Quality Score
3.2 Tender Submissions
3.2.1 Service Buyers can adopt one-envelope or two-envelope system.
(a) One-envelope System. Tenderers submit the Price and Quality together in one envelope.
The Price and Quality scores shall be computed at the same time. The one-envelope
system can be adopted for projects whereby the scoring of the specified quality attributes
is based on quantified templates with no subjective judgment.
(b) Two-envelope System. Tenderers submit the Quality envelope separately from the Price
envelope. Service buyers would open and compute the Quality score first, before
opening the Price envelope to compute the combined score. This ensures that the
Quality score is not influenced by the Price.
153.3 Weightage for Price and Quality Components
3.3.1 The commonly adopted price-quality weightages for FM tenders is as shown below. Where
possible, service buyers should place higher emphasis on quality by specifying higher
weightage for quality during tender evaluation.
Component Weightage
Price 40% - 60%
Quality 60% - 40% correspondingly
3.4 Price Component
3.4.1 The tender price refers to the total bid including base and optional years. The lowest tender
price will be given the maximum Price score. The Price scores of the other tenderers will be
inversely proportional to the lowest tender price as shown in the formula below.
Lowest tender price
Price Score = x Price weightage
Tenderer’s price
3.4.2 When computing the P-score, the tenderer’s price should not include provisional sums and/or
prime costs.
3.4.3 To deter price diving, service buyers can include either one of the following “Abnormally-low-
bid Curbing Mechanism” (ACM):
(a) Impose a price-score cap where tenderers with prices that are more than 20% below the
average of tenderers’ price will not be given further advantage8; or
(b) Investigate and consider disqualifying tenderers with prices that are more than 20%
below the average of tenderers’ price; or
(c) Other similar ACM.
8 Refer to Quality Fee Method framework on similar fee-diving mechanism.
16Example of price-diving scenario
When the lowest qualifying tender price is lower than 0.8 Paverage
Price Score = 0.8 Paverage X Price Weightage
Tenderer’s Price
Where, Paverage = Σ Tender Price of all Qualifying Bids
No. of Qualifying Bids
Any price quoted lower than 0.8Paverage will get the maximum Price-score.
3.5 Quality Component
3.5.1 The tenderer with the highest total raw quality points will be given the maximum Quality score.
The Quality score of the other tenderers will be calculated proportionally to the highest total
Quality points. The formula below shall be used to compute the Quality score.
Tenderer's total raw quality points
Quality Score = x Quality weightage
Highest total raw quality points
3.5.2 Under the quality component, service buyers have the flexibility to decide which quality
attributes are relevant for their project, assign the maximum points for each quality attribute
and set out the scoring method accordingly in the tender documents. Attributes under the
quality component could include:
(a) Relevant track records of tenderer and past performance 9 to demonstrate firm’s
competencies or capabilities;
(b) Organisation structure and quality of proposed Operations Team on site;
(c) Proposed operational strategy in terms of manpower and resource deployment plan,
technology adoption, subcontractor management plan and quality of proposed
subcontractors, etc to meet the KPIs set out.;
(d) Innovation and smart FM solutions10 which add value to the project;
9 Development of a standard performance appraisal system is in progress.
10 Refer to BCA’s Guide to Smart FM
17(e) Firm’s commitment to environmental sustainability based on proposals for upcycling,
recycling or waste reduction solutions, etc.;
(f) Firm’s past safety performance and proposed safety proposals or audit system;
(g) FM recognised certification scheme by FM trade associations to better discern the
quality of FMCs; and
(h) Other attributes such as current workload if any. For example, assign less points if the
service provider is undertaking too many ongoing service contracts.
Tip
!
The smart FM solutions proposed should demonstrate that it will add value and meet
the needs of the service buyer’s desired outcomes. For e.g. a proposal to use drones
in a “no fly zone” does not add value to the project and should not be considered.
3.6 Information required in tender documents
3.6.1 The following items should be clearly made known at tender stage:
(a) Weightage for Price and Quality;
(b) Quality attributes applicable and their assigned maximum points;
(c) Scoring method for each attribute e.g. benchmark performance method or ranking
method11, etc. Benchmarks used in the benchmark performance method must be made
known, together with how tenderers which perform better or worse than the benchmark
will be scored;
(d) Any minimum qualifying criterion for a specific quality attribute, which, if not met, would
disqualify the tenderer (optional); and
(e) Any minimum total quality points below which tenderers will not be further considered
(optional).
11 Please refer to the Price-Quality Method Framework on the Benchmark performance and ranking methods.
18Stage 4: Post-Tender Stage
4.1 Performance Appraisal
4.1.1 The performance of the service providers should be assessed regularly throughout the
contract lifecycle, on a yearly basis and upon completion of the contract. This can be done by
assigning performance scores based on achievement of the KPIs set by service buyers in the
contract. The performance appraisal will provide a quality feedback loop on service providers’
performance and allow those which had performed well in past contracts to be recognised
during tender evaluation.
4.1.2 Service buyers can determine the performance grade (i.e. Excellent, Very Good, Good,
Satisfactory, Poor or Very Poor) of the service providers by benchmarking the total
performance scores against the Performance Target. See illustration below.
Performance Grades (illustration only)
Performance score attained by FMC Performance Grade
PT + (> 5%) Excellent
PT + (> 3% to 5%) Very Good
PT + (up to 3%) Good
PT - (up to 2%) Satisfactory
PT - (> 2% to 10%) Poor
PT - (> 10%) Very Poor
Performance Target (PT) shall be the average of all monthly scores
4.1.3 Public agencies will be required to submit the performance appraisals promptly on a yearly
basis and at the end of the contract. Private sector contracts can also submit the performance
appraisals to BCA on a voluntary basis. Submission of performance appraisals will help build
up the database of FMC’s performance track record to be published and use in tender
evaluations subsequently.
19Conclusion
We seek the active participation of all our stakeholders – the firms, industry associations, and the
unions, in the implementation of this Guide together with the support of the Government. We hope
that with the application of outcome-based contracting and IFM, the existing FM processes can be
streamlined, giving rise to a more efficient operation and improved service delivery, that we envisioned.
We welcome any new suggestions and ideas that can further enhance the operations and execution
to meet the evolving needs of this industry as we embark on this journey to transform the FM sector.
For suggestions and clarifications, please send them through https://www.bca.gov.sg/feedbackform/.
20What early adopters for IFM and OBC say?
An integrated FM approach has proven to enable businesses to remove traditional operational
silos, synergise operations and create the best in-house experience for their customers.
Especially after COVID-19, an integrated FM approach backed by best-fit technology and propelled
by ops-tech processes is crucial for businesses to adapt to the new normal, to be at the forefront
of the competition.
Certis IFM has evolved into a one-stop solution provider of the full suite of FM services. We develop
and implement tech systems that allow us to orchestrate and synergise FM operations in mega-
FM projects across multiple sites. Monitoring and surveillance data is consolidated and analysed
in real-time, enabling us to implement predictive and preventive maintenance, optimise
resources, and increase cost-savings for customers.
Mr Lee Hock Heng
Head, Certis Integrated Services
The outcome-based approach allowed CBRE to re-engineer the work process through
higher utilisation of specialised skills and future-proofing the workforce. We are also highly
motivated to support Singapore IFM transformation agenda by serving clients above and beyond
the contract through innovation and productivity improvements. CBRE is inspired by the flexibility
afforded by IFM as this empowered us to create and effect innovative solutions that result
in a win-win solution for our clients. The outcome-based and IFM approaches have enabled
CBRE-JTC team to be recognised as the Facilities Management Team of the Year in 2020.
Mr Loh Wei Loon
Senior Managing Director, Singapore and South East Asia
CBRE | Global Workplace Solutions
As our assets grow into larger portfolios, we can leverage IFM as a force multiplier to procure
and manage more strategically. The amalgamation of FM works has enabled us to manage our
products at a portfolio level thus, opening new possibilities to conduct big-data analytics to
enable financially and fundamentally sound FM contracting decisions.
Mr Jason Foo
Director, Facilities Planning & Advisory Division
JTC Corporation
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